Samsung Electro-Mechanics operated its multilayer ceramic capacitor production lines at 99% capacity during the third quarter, company filings show, marking the highest utilization rate on record as artificial intelligence infrastructure drives unprecedented demand for the electronic components.
The capacity rate climbed from 86% in the year-earlier period and reached 96% in the first quarter and 98% in the second quarter. Industry observers expect Samsung Electro-Mechanics’ MLCC factories to maintain rates above 90% through the fourth quarter despite typical seasonal slowdowns, according to people familiar with the matter.
AI servers require up to 10 times more MLCCs than conventional servers, with high-specification components needed around graphics processing units to withstand extreme temperatures and power densities. Electric vehicles now use 20,000 to 30,000 MLCCs per vehicle, further straining production capacity across the industry.
Murata Manufacturing reported its MLCC plant utilization reached 95% in the third quarter, while Taiyo Yuden operated at approximately 90%. Supply constraints persist industry-wide as manufacturers struggle to expand production fast enough to meet surging orders.
Samsung Electro-Mechanics commands approximately 40% market share in AI server MLCCs, rivaling Murata’s position, though Murata leads the overall MLCC market with 40% share compared to Samsung Electro-Mechanics’ 23% to 25%.
The Korean manufacturer benefits from stronger growth potential than Japanese competitors and maintains technical advantages over Chinese producers still focused on lower-margin consumer electronics applications, according to industry sources.
